Regarding the gap issue, the building code sets out standards for the portion of a wall that can be glazed (i.e. windows) depending on how close that wall is to the property line. For a wall built on the property line, 0% of the wall can be glazed. As the wall moves back from the property line, the portion of the wall that can be glazed increases. The only way to get around this is to have an agreement registered to the land title of the neighbouring property that basically says that the neighbouring land owner agrees to not rebuild right up to his or her property line.
If Charlie is built to the property line, we can assume that Hudson is built two feet from this property line. While I don't know the exact proportion that is allowed to be glazed, it can be assumed that it is not far above zero. Therefore, the number of windows blocked is relatively low (although I agree that having any windows entirely blocked is pretty crappy).
Another possibility is that the glazing on the east side of Husdon aren't windows at all but actually spanderel planels to break up what would otherwise be a blank face. The Design Review Panel has been known to request that walls built up or close to the property line (and therefore relatively blank walls) have design elements added to articulate the facade.
Just thought I'd weigh in with some alternatives to "Great Gulf... what a bunch of assholes"